Flower Mound Leader > News
Flower Mound receives bond rating boost
By Chris Roark, Staff Writer
The town of Flower Mound’s general obligation bond rating has increased by two levels, jumping from AA- to AA+, town staff announced during Monday’s council meeting.
The jump is attributed to sound financial performance, moderate debt burden and economic expansion, according to a press release issued by the town. AA+ is the second-highest rating for Standard & Poor’s, an independent bond rating service.
Having a higher rating allows the town to have lower interest rates on long-term borrowing and lower bond insurance costs. It also helps expand the market for potential buyers.
“A two-level bond rating increase is almost unheard of, particularly in our current economic climate,” said Michael Ryan, a town spokesperson. “The new rating is a strong indicator of the financial community’s confidence in the town of Flower Mound as an investment, as it reflects our commitment to conservative leadership, quality services, and sound financial planning.”
The rating increase helps offset the interest the town has to pay for the $9.2 million certificates of obligation, which will go toward a variety of projects. Those include: Fire Station No. 4,
facility improvements and water and wastewater projects.
The upgrade is the second increase to the town’s general obligation bond rating in the past year. Moody’s Investors Service upgraded the town’s rating from Aa3 to Aa2 in July, 2007. Moody’s considered the town’s conservative approach to budgeting and healthy financial obligations, supported by strong management.
In other action, the council unanimously approved a site plan request to develop Justin Road Express Car Wash, an automatic car wash facility located at 3005 Justin Road.
Following executive session, the council announced the appointments to three places on the animal services board. Cathy McKaige and Christina Howard were reappointed, and John Harvey, a licensed veterinarian at Cross Timbers Animal and Medical Center, was also named to the board.
The next scheduled council meeting Aug. 4 is expected to include a public hearing on the River Walk at Central Park, which follows a public hearing Monday on the issue at the planning and zoning meeting.
River walk developers can go before the council, with or without a vote of recommendation from planning and zoning.
Since the applicant is seeking changes to the master plan, it would require a super majority vote, meaning the request would be denied if more than one of the five council members vote against it.
The jump is attributed to sound financial performance, moderate debt burden and economic expansion, according to a press release issued by the town. AA+ is the second-highest rating for Standard & Poor’s, an independent bond rating service.
Having a higher rating allows the town to have lower interest rates on long-term borrowing and lower bond insurance costs. It also helps expand the market for potential buyers.
“A two-level bond rating increase is almost unheard of, particularly in our current economic climate,” said Michael Ryan, a town spokesperson. “The new rating is a strong indicator of the financial community’s confidence in the town of Flower Mound as an investment, as it reflects our commitment to conservative leadership, quality services, and sound financial planning.”
The rating increase helps offset the interest the town has to pay for the $9.2 million certificates of obligation, which will go toward a variety of projects. Those include: Fire Station No. 4,
facility improvements and water and wastewater projects.
The upgrade is the second increase to the town’s general obligation bond rating in the past year. Moody’s Investors Service upgraded the town’s rating from Aa3 to Aa2 in July, 2007. Moody’s considered the town’s conservative approach to budgeting and healthy financial obligations, supported by strong management.
In other action, the council unanimously approved a site plan request to develop Justin Road Express Car Wash, an automatic car wash facility located at 3005 Justin Road.
Following executive session, the council announced the appointments to three places on the animal services board. Cathy McKaige and Christina Howard were reappointed, and John Harvey, a licensed veterinarian at Cross Timbers Animal and Medical Center, was also named to the board.
The next scheduled council meeting Aug. 4 is expected to include a public hearing on the River Walk at Central Park, which follows a public hearing Monday on the issue at the planning and zoning meeting.
River walk developers can go before the council, with or without a vote of recommendation from planning and zoning.
Since the applicant is seeking changes to the master plan, it would require a super majority vote, meaning the request would be denied if more than one of the five council members vote against it.
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